Khatoni: Traditional Indian Accounting System
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Questions and Answers

What is the primary purpose of a Khatoni?

  • To calculate income tax
  • To prepare a comprehensive financial report
  • To record complex accounting transactions
  • To record daily transactions, receipts, and payments (correct)

    • In a Khatoni, which column is used to record receipts and income?

  • Bottom section
  • Left column (correct)
  • Right column
  • Top section

    • Who is typically responsible for maintaining a Khatoni?

  • Auditor
  • Manager
  • Business owner
  • Munim (accountant) or a clerk (correct)

    • What is a limitation of using a Khatoni?

    <p>It is limited to recording simple transactions</p> Signup and view all the answers

    What is an advantage of using a Khatoni?

    <p>It helps to keep track of daily transactions and cash flow</p> Signup and view all the answers

    Why is a Khatoni vulnerable to errors?

    <p>It is handwritten and manual</p> Signup and view all the answers

    What is the purpose of a survey number?

    <p>To identify and distinguish one plot of land from another</p> Signup and view all the answers

    What type of information is recorded in a Khasra document?

    <p>Information about the ownership of the property, including the name of the owner and any changes in ownership</p> Signup and view all the answers

    What is the significance of Khasra records in relation to revenue?

    <p>They are used to determine the amount of land revenue or taxes payable by the owner</p> Signup and view all the answers

    What type of entity can own a property, according to Khasra records?

    <p>Individual, joint, or legal entities such as companies or trusts</p> Signup and view all the answers

    What is the primary function of the Revenue Department or Land Records Office?

    <p>To maintain Khasra records</p> Signup and view all the answers

    What type of information is typically included in a Khasra record about the plot?

    <p>Details of the soil type, water source, and existing structures or improvements</p> Signup and view all the answers

    Study Notes

    What is Khatoni?

    • Khatoni is a traditional Indian accounting system used by merchants and traders.
    • It is a handwritten ledger book used to record daily transactions, receipts, and payments.

    Features of Khatoni

    • Khatoni is written in a specific format, with each page divided into two columns:
      • Debit (left column) for recording receipts and income.
      • Credit (right column) for recording payments and expenses.
    • Entries are made in a specific order, with the date, description, and amount recorded.
    • Khatoni is usually maintained by a Munim (accountant) or a clerk.

    Advantages of Khatoni

    • Simple and easy to understand.
    • Does not require extensive knowledge of accounting principles.
    • Helps to keep track of daily transactions and cash flow.
    • Facilitates quick decision-making and financial planning.

    Limitations of Khatoni

    • Limited to recording simple transactions and does not accommodate complex accounting practices.
    • Does not provide a comprehensive picture of the business's financial position.
    • Vulnerable to errors and manipulation.
    • Time-consuming and labor-intensive.

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    Learn about Khatoni, a traditional Indian accounting system used by merchants and traders to record daily transactions, receipts, and payments. Understand its features, advantages, and limitations.

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